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A Company Manufactures 1,200 Cylinders Per Day,each Requiring a Pressure

Question 11

Multiple Choice

A company manufactures 1,200 cylinders per day,each requiring a pressure gauge.The purchase price of the pressure gauge is $3.20.The company controller estimated annual holding costs at 25 percent per year,while the cost of placing an order was estimated at $55.00.Assuming that the plant operates 45 weeks per year,the EOQ for the pressure gauge is:


A) 3,000 units
B) 2,929 units.
C) 2,872 units.
D) 2,725 units.
E) 1,200 units.

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